Choosing a Business Name FAQ

• What issues should I keep in mind when picking a name for my business?
• How do I find out if the business name I want is available?
• What is a trademark?
• What is the "legal name" of my business?
• What is a fictitious business name?
• When does a variation of my name become a fictitious business name?
• Do I have to register my business name?
• Can I change my business name to include "Inc." or "LLC"?
• What's the best type of name for my business?

No doubt you'll spend hours brainstorming for a business name that represents your products or services—a name that's both marketable and infused with personality. To help the creative process along, you might search the internet, browse the dictionary, read trade magazines, and bounce ideas off of friends and colleagues. But as you hunt for the perfect name, keep three main questions in mind:

• Will your business name receive trademark protection?
• Is your proposed business name available?
• If your business will have a website, is a similar domain name available?

Plus, if you're starting a corporation, limited liability company (LLC), or limited partnership, you must comply with a few state rules for naming your business.

You'll have to conduct a name and trademark search to make sure no one else is using the name you want to use (or a very similar name) to market similar products or services. You should also check with your county clerk's office to see whether your proposed name is already on the list of fictitious or assumed business names in your county. If you find that your chosen name (or a very similar one) is registered as a trademark, or is listed on a fictitious or assumed name register, you shouldn't use it.

If you're organizing your business as a corporation, LLC, or limited partnership, you must also make sure your business name isn't the same as that of an existing corporation, LLC, or limited partnership in your state. If a name that's identical or very similar to your proposed business name turns up in your state's database, you'll have to choose another.

Read Make Sure Your Proposed Business Name Is Available for instructions on how to do a thorough name and trademark search.

A trademark (sometimes called simply a "mark") is any word, phrase, design, or symbol used to market a product or service. Technically, a mark used to market a service, rather than a product, is called a "service mark." Though the term "trademark" is commonly used for both types of marks because they refer to the same group of legal protections.

Owners of trademarks have rights under both federal and state law that give them the power in many cases to prevent others from using the same or confusingly similar trademarks.

To make sure your proposed business name won't step on someone else's rights to an existing trademark, you'll have to do a trademark search. (Read Make Sure Your Proposed Business Name Is Available to learn how to do a trademark search.)

Also, when picking a business name, you should choose a name that'll be likely to receive trademark protection and then take steps to protect your business name as a trademark. To be protected as a trademark, the mark needs to:

• be distinctive, and
• identify the source of goods or services.

In general, distinctive marks aren't generic or descriptive of the goods or services the mark represents. For example, you probably couldn't trademark "Produce Stand" for a stand selling fruits and vegetables because "Produce Stand" simply describes the goods. Instead, distinctive marks fall under three categories:

• suggestive (the trademark implies the goods or services but doesn't directly describe them, such as "NETFLIX" for a movie streaming service)
• arbitrary (the trademark has nothing to do with the associated goods or services, think "Apple" for computer products), or
• fanciful (the trademark is a made up word(s) like "Kodak")

For more information on protecting your business name as a trademark, see our FAQ on filing a federal trademark application.

The legal name of a business is the official name of the person or entity that owns a business. If you're the only owner of your business (a sole proprietor), then its legal name is simply your full name.

If your business is a general partnership, and you have a written partnership agreement that gives a name to the partnership, then that name is the legal name of the business. Otherwise, the legal name of a general partnership usually consists of the last names of the owners.

States have different definitions of "legal name," especially for individuals. Your state might consider a sole proprietor's legal name as just their last name or their full first and last name. Make sure you check your state's laws for specific rules.

For limited partnerships, LLCs, corporations, and other registered businesses, the legal name of the business is the name registered with the state filing office.

Your business's legal name will be required on all government forms and applications. The legal name is particularly important to use on your application for a federal employer identification number.

If you plan to use a name that's different from your business's legal name, you'll need to register the name you want to use with a government agency. For more information, see our article on DBAs.

The term "fictitious business name" (or "assumed business name," "trade name," or "DBA" for "doing business as") is used when a business uses a name that's different from its legal name. For instance, if John O'Toole names his sole proprietorship Turtle's Classic Cars, the name "Turtle's Classic Cars" is a fictitious business name because it doesn't contain John's last name, "O'Toole."

If your business uses a fictitious business name, you'll need to register it with a government agency—in most states, your local county clerk's office.

The government likes to keep track of fictitious business names to give customers a quick way to determine the owner of a company, in case the customer has a complaint or needs to take legal action. But registering your fictitious name also helps business owners. If you used a fictitious name for your business but didn't register it, you yourself could get the raw end of some deals: You wouldn't be able to enforce any contract you signed under your business name. This requirement is in your own best interest, so don't be tempted to shrug it off.

For more information, read more about registering your business name.

If you're starting a corporation, LLC, or limited partnership, your official business name will be automatically registered when you file your articles of incorporation, articles of organization, or statement of limited partnership with your state filing office. However, if you will sell products or services under a different name, you must also file a fictitious name statement (sometimes called an "assumed" name statement) with the state or county where your business is headquartered.

Other types of businesses may also have to comply with fictitious or assumed business name requirements. Generally, any business that doesn't use its legal name as part of its business name must file a fictitious name statement with a government agency, usually the county clerk's office.

You might also want to take advantage of the extra protection that registering your name as a trademark can give you. While it's not required, registering your name as a trademark at the state and/or federal level can prevent other businesses from using a name that's likely to be confused with your business name. For more information, see Filing a Federal Trademark Application FAQ.

There's no one-size-fits-all formula for picking a great business name. The best name depends on a host of considerations -- some as obvious as the kind of business you do, others as unique as your own tastes and style. There are, however, a few guidelines that will steer you in the right direction. A good business name should:

• be distinctive
• be memorable
• be easily spelled and pronounced
• suggest the products or services you offer, and
• distinguish you from your competitors.